ENCOMPASSTOWN HALL MEETING

March 17, 2014

ENCOMPASS Town Hall Agenda

1.Introduction

Brian Bailey, Director, State Budget Agency

Suzanne Crouch, Auditor of State

2. Financial Management CircularsZac Jackson, Deputy Director, State Budget Agency

3. Year-End

Budget Closing – Joe Fistrovich, Controller, State Budget Agency

Financial Closing – Steve Daniels, Deputy Auditor, Auditor of State’s

Office

4. HyperionDeanna Oware, Deputy Director, State Budget Agency

5. AP Updates – Steve Daniels, Deputy Auditor, Auditor of State’s Office

6. Reminders & QA

Opening Remarks Structural surplus goal is $100M by June 30, 2014 December 2013 Revenue Forecast:

Removed nearly $340M from April 2013 forecast in FY14

Through February 2014 revenues are nearly $90M below forecast from December, and $59.3M below February 2013 collections

Hyperion environment used statewide for FY16/FY17 budget development

Budget Instructions tentative release date early summer 2014

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FINANCIALMANAGEMENTCIRCULARSZAC JACKSON, DEPUTY DIRECTOR, STATE BUDGET AGENCY

Reissue of the Travel Policy FMC: Meal per diems no longer allowable

unless accompanied by overnight stay Mileage reimbursement Still $0.44 per mile for business

miles Now $0.24 for relocation/moving

expenses Other technical updates

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Financial Management Circulars

New IRS Audit Compliance FMC Effective July 1, 2014 There are many things that should be

processed as payroll – not AP Examples:

Board and Commission Members must be paid stipends via Payroll rather than Accounts Payable

Bonuses, Awards, and Tokens of Appreciation

More details will be in the FMC6

Financial Management Circulars

YEAR-ENDBUDGET CLOSE JOE FISTROVICH, CONTROLLER, STATE BUDGET AGENCY

Budget Closing Update

Thanks for your help thus far in preparation for year end.

For items to be paid / encumbered against FY14 budget, you must comply with deadlines in Auditor of State’s and Department of Administration’s Year End Memos.

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Year End - Update

IGNORE pre-FY14 requisitions in PeopleSoft.

FOCUS ON purchase orders and project costing cleanup for FY14 transactions.

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Year End - Preparation Timely creation of ROC accounting

entries. Review any pending prior month entries not completed.

Timely approval of GL entries. Is your Agency submitting correcting entries within 90 days of original GL entry?

Has your Agency addressed “hanging” AP Vouchers passed their scheduled due date?

WHAT ARE YOU WAITING FOR?

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REVIEW all current outstanding purchase orders. CLOSE unneeded purchase orders.

POs with any activity against them cannot be cancelled.

Clean up funds with negative APPROP balances.

State Budget Agency has pre-loaded FY15 1st quarter allotments.

Initial Budget Allotment schedules and 1st Quarter Transfer List to be loaded before July 1st.

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Year End - Preparation

Work Done Prior to PO Rollover

Prior to PO Roll, all PO Vouchers must be budget checked and posted.

To qualify for rollover, approved POs must be dispatched and NOT have budget errors.

All outstanding FY14 requisitions must be closed by May 30th.

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GMIS will run PO Rollover beginning June 8th. Schedule by BU to be posted on ENCOMPASS website in

mid May. Application Announcement and ENCOMPASS

Homepage Announcement will be posted when PO payments can resume by business unit.

PO will retain Budget Reference, but Budget Period will become 2015.

When a Business Unit is being rolled, security is removed on that day. Users have access to login, but will not be able to see or do anything related to the BU for that day.

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During PO Rollover

PO Rollover - Bulletin #1

POs with no payments since July 1, 2013 must be closed no later than May 30, 2014.

Queries included to view vouchers, requisitions, and purchase order with no payments.

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PO Rollover - Bulletin #2

Any PO with negative encumbrances must be fixed as instructed or closed no later than May 30, 2014.

POs that need to have an advice of change completed (price or quantity changes, incorrect chartfields, etc...) must be adjusted or closed no later than May 30, 2014.

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PO Rollover - Bulletin #3

Any PO identified as being tied to an underpaid receipt must be adjusted or closed by the agency no later than May 30, 2014.

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PO Rollover - Final Thoughts Any exceptions to this policy must be

approved by the Agency’s SBA Budget Analyst.

Our goal is to be completed with PO Rollover by June 16th or 17th.

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Budget Year End - Timeline

Agency staff will not be allowed in PeopleSoft from 4:00 PM on June 30th until 8:00 AM on July 1st (Indy time).

Reports of Collection due to Treasurer by 3:00 PM and final accounting entries made by 4:00 PM on June 30th to be counted as FY14 revenue.

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Budget Year End - Timeline

FY14 ALLOT_CTRL and ALLOT ledgers will be reduced to zero using Budget Close process.

FY14 Budget for non-reverting Control 7 Funds will be manually rolled forward to FY15 for ledgers based on APPROP available balance.

Control 5 and 6 Funds will be manually rolled forward to FY15 based on available cash balance after Financial Close is complete.

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Budget Year End - Process

Non-reverting Budgets subject to change based on post-6/30 Administrative Actions for FY14.

Plan: Non-reverting Budgets available by 8:00 AM on July 1st.

Reverting Funds (Control 3) – FY14 budgets expire. FY15 Budgets will be available by 8:00 AM on July 1st.

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YEAR-ENDFINANCIAL CLOSINGUPDATE STEVE DANIELS, DEPUTY AUDITOR, AUDITOR OF STATE’S OFFICE

Year End Preparation

Tracking spreadsheet “ENCOMPASS Cleanup Items” updated monthly now (every Friday later) and posted on ENCOMPASS website under ENCOMPASS Documents 2014 Year End Document Cleanup

http://myshare.in.gov/SBA/encompass/Shared%20Documents/Forms/AllItems.aspx?RootFolder=%2FSBA%2Fencompass%2FShared%20Documents%2F2014%20Year%20End%20Document%20Cleanup&FolderCTID=0x012000BCB1AAB4C101E043ACA92C4E2CAF12AC&View={F028AA1A-92F6-481F-AD3C-A6A404494279

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Year End Preparation – Accts Payable

Please do not submit any AP items to AOS IF: They have not been posted They have not been fully approved by your

Agency Deadline for submitting FY14 Claim Vouchers, PO

payments, Travel Vouchers, SDO Reimbursements to AOS by 4:30 PM June 20th.

2015 Budget Reference should not be used for transactions with accounting date prior to July 1st.

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Year End Preparation – Accts Payable

Like last year, we will not automatically change AP Defaults to FY 2015 when your agency year-end deadline or extension has passed To have AP Defaults changed to FY 2015, Agency CFO

needs to submit a GMIS Issue to have them changed We will confirm that processing for FY 2014 has finished

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Accounting entries must be completed for all ROCs by 4:00 PM June 30th to be counted as FY14 revenues.

AR approvers must approve all ROC Direct Journals by 4:00 PM June 30th.

SDO Reimbursement Voucher Deposits Accounting entries must be completed by agencies by 4:00 PM June 30th.

Do not use 2015 for Budget Reference until July 1, 2014 on deposit accounting entries.

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Year End Prep - Accts Receivable

Capital assets acquired June 30, 2014, or earlier must be reported to prevent a prior period adjustment to the State’s financial statements. 

All available FY14 asset related receivers and asset related vouchers must be completely processed through interfaces into Asset Management (AM) by Wednesday, July 2, 2014.

Deadline to enter and complete processing of all asset transactions for FY14 will be July 2nd.

Every pre-interface and interface must be successfully loaded.

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Year End Prep - Asset Management

Year End Prep Asset Management Annual inventory must be completed before

June 30, 2014. Must be a comprehensive inventory All updated including asset additions and retirements

must be entered into AM by June 30, 2014 Public Query – SOIAM025_PLUS

 AM Cleanup Project 2014 Designed to identify and remove  inconsistencies from

AM All updates including changes to the descrs, profiles,

useful lives, and categories must be entered into AM by June 30, 2014.

Public Query - SOIAM_SPECIAL_PROJECT_FY_2014 Additional instructions can be found on

Encompass website

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Year End Prep - Asset Management

Closing Periods in AM AM acct periods close monthly - all

transactions must be completed by the last day of each month or moved into the next accounting period to be processed.

To avoid additional clean up, transactions entered must use current date as acct date. Transactions submitted to workflow

must be approved before the period is closed.

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Year End Prep - Asset Management

All available transactions must be charged/allocated to the correct projects prior to year end, including Negative Revenue amounts in the ENCOMPASS Cleanup Items spreadsheet.

Drawdowns for receivables from the Federal Government as of June 30, 2014 need to be done and entered in PeopleSoft by July 31, 2014.

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Year End Prep – Projects Module

Deadline for submitting FY14 Journal Entries and ID bill Journal Entries to AOS is 4:30 PM June 20th.

Automatic exception for allocating June 18th, and June 25th payroll entries Deadline for these entries is 4:30 PM July 3rd

No exceptions! June 25th payroll will be loaded by morning of June

23rd (potentially June 21st).

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Year End Prep - General Ledger

Please review trial balances regularly, preferably monthly. Make corrections on timely basis

Agency Accounting Responsibilities (from Accounting Manual) Operate within the confines of the established budget. Maintain an adequate internal control environment. Maintain adequate internal control procedures. Properly utilize the state accounting system as prescribed by

the ENCOMPASS team. Maintain an effective and accurate accounting system for

necessary subsidiary and supplementary records. Maintain, and make available for audit, documentation

supporting the validity and accountability of monies received or disbursed.

Perform duties in accordance with statute, regulations, state policy, contract provisions, and federal requirements as applicable .

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Year End Prep - General Ledger

Financial Year End Timeline

Agency staff will not be allowed in PeopleSoft from 4:30 PM on July 11th until 8:00 AM on July 14th (Indy time).

Necessary to allow processing of Financial Close.

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HYPERION UPDATEDEANNA OWARE, DEPUTY DIRECTOR, STATE BUDGET AGENCY

Budget Development 16/17 will only be done in Hyperion Environment

IOT/GMIS to manage the Hyperion environment Additional license purchases Maintenance in out years Hardware support Development/contractual support

Statewide costs ~ will not exceed $612K; will amount to about 7.5% increase in monthly PS Financials charge back in FY15 Existing Hyperion users no longer have to pay for separate

maintenance contracts Reserve flexibility is an option if agencies need assistance in

covering increases associated with Hyperion Budget Development expenses

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Hyperion Update

Hyperion Update Hyperion Environment can be used for more than

developing budgets for the biennium. Basic vs. Advanced licenses SBA will not require the purchase/use of an

Advanced license The $612K amount referenced on the previous

slide does not include costs for specialized/advanced functions.

Agencies will pay for the advanced features within Hyperion as they do now.

GMIS will monitor Advanced use in case additional hardware is needed to support the entire environment.

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ACCOUNTS PAYABLE UPDATESTEVE DANIELS, DEPUTY AUDITOR, AUDITOR OF STATE’S OFFICE

Reminder: For subrecipient payments from Federal Funds, include the CFDA Number in the Payment Message field More details to follow from State Board of Accounts Requirement per Federal OMB Circular A-133

Do not make AP payments from Salaries & Wages accounts Account range from 510100 – 514300 should not be used Payments should be processed via Payroll

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Accounts Payable Update

REMINDERS / Q & A TEAM

Reminders – PO Rollover

AP PO Vouchers must be posted prior to Reqs/PO’s being closed and prior to PO Rollover.

When a Business Unit is being rolled, security is removed on that day – schedule to be posted in mid-May.

PO Rollover prep deadline is May 30th.

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Reminders – Financial Close

Ensure all Vouchers submitted and to be paid by AOS are Posted and fully Agency Approved prior to Year End Payables cutoff deadline (June 20th).

Year End Deadlines and Shutouts Asset Management Deadline – July 2nd No PeopleSoft access from 4:30 PM July

11th until 8:00 AM July 14th.

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Reminders – PS Financials The PeopleSoft Financials system

will be down for a technical upgrade from 6:00 PM on April 17, 2014 to 6:00 AM on April 21, 2014.

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Contact Information Steve Daniels, Auditor of State’s Office

sdaniels@auditor.in.gov (317) 233-9817 Joe Fistrovich, State Budget Agency

jfistrovich@sba.in.gov (317) 232-2974 Zac Jackson, State Budget Agency

zjackson@sba.in.gov (317)232-5628 Deanna Oware, State Budget Agency

doware@sba.in.gov (317) 232-5604

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ENCOMPASS Website

http://myshare.in.gov/sba/encompass

If you are having technical issues, submit to:

https://financial.gmis.in.gov/psc/guest/EMPLOYEE

ERP/c/SOI_CUSTOM_APPS.SOI_GMIS_ISSUE.GBL

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We Welcome Your Feedback, Questions & Comments

Contact Information (cont)